Insulation industry news from Global Insulation

Belarus/Russia: US-based Owens Corning has agreed to sell its Belarusian and Russian assets to materials and technologies company Umatex. Umatex is a subsidiary of Russian state-owned nuclear power provider Rosatom. World Service Wire News has reported that the assets in question include the Gus-Khrustalny glasswool plant in Vladimir Oblast and the Tver mineral wool insulation plant in Tver Oblast, both in Russia.

Owens Corning chair and CEO Brian Chambers said "This announcement represents the final step in our process to fully exit our operations in Russia. I would like to thank our colleagues in Russia for their contributions to our company and customers over the years."

Belgium: Recticel recorded consolidated sales of Euro295m in the first quarter of 2022, up by 43% year-on-year from Euro206m in the first quarter of 2021. The group attributed the growth partly to a 28% year-on-year increase in its insulation sales in the quarter. It ended the quarter with net financial debt of Euro130m, down by 12% year-on-year from Euro148m. Recticel said that the quarter brought progress towards closing its divestment of its engineered foams business line to US-based Carpenter in mid-2022.

The group said that, despite geopolitical instability and inflationary pressure, its business continues to develop well in 2022. It continues to work on accelerated growth plans in order to double its insulation sales over a period ending in 2025.

Belgium: Recticel’s insulation business has used price rises to compensate for a steep rise in the price of raw chemical input materials. The division’s sales grew by 57% year-on-year to Euro391m in 2021 from Euro249m in 2020. Its adjusted earnings before taxation, interest, depreciation and amortisation (EBTIDA) more than doubled to Euro62.4m from Euro27.5m. It said that its Insulation and Engineered Foams businesses performed well in a volatile environment. Chemical raw materials supply reportedly remain tight and prices are showing little signs of stabilisation. Transportation and labour costs are increasing at an “unprecedented” rate. However it added that energy cost inflation has a minor impact given the “very low energy intensity of our business.” Overall the group’s sales and adjusted EBITDA rose by 67.4% to Euro1.03bn and by 134% to Euro89.7m.

“We are happy with the very positive sales and profitability development in 2021, a year marked by deep changes in our company. Changes which were planned and announced, such as the acquisition and integration of FoamPartner and the divestment of the Bedding activities. Changes which came as a consequence of the unsolicited takeover bid by Greiner, such as the divestment of our newly created Engineered Foams business segment,” said chief executive officer Olivier Chapelle.

Belgium: Recticel’s consolidated net sales fell by 6% year-on-year in 2020 to Euro829m from Euro879m in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15% to Euro51.6m from Euro60.7m. Sales from its insulation business rose slightly to Euro249m driven by a strong second half of 2020 and higher prices due to higher raw input costs. The group made divestments to businesses held by its flexible foams and automotive divisions on 30 June 2020 significantly improving its sales and earnings in the reporting year.

Chief executive officer Olivier Chapelle said, “After an 18% sales decline in the first half of 2020 caused by the Covid-19 lockdown, the second half of 2020 was marked by significant sales fluctuations varying from one business segment or country to another, influenced by the subsequent waves of the Covid-19 outbreaks and the related precautionary measures taken by national governments. In this difficult context, we managed to generate a robust 7% sales growth in the second half of 2020 and a 10% increase in adjusted EBITDA.”

“Numerous ‘force majeure’ events at the premises of our chemical raw material suppliers have created and continue to create supply shortages of polyols and isocyanates. Our suppliers have used this situation to implement price increases at an historically high pace, leading to new all-time highs. In response to this, we were compelled to mitigate these cost increases through corresponding sale price increases. The situation is expected to normalise as of the third quarter of 2021.”

UK: SIG and Kingspan have agreed to terminate the sale of SIG subsidiary Building Solutions (National) to Kingspan for Euro42.1m. The Competition and Markets Authority (CMA) had referred the deal for a Phase 2 Investigation on 21 April 2020. SIG said that it anticipated the investigation to conclude in October 2020. The deal will expire on 7 July 2020. Due to ‘prevailing market conditions,’ the parties terminated the agreement.

SIG said, “It has not been possible for the company and Kingspan to agree commercial terms for the extension of the agreement.”

France: Saint-Gobain has announced the sale of its subsidiary Civil Engineering Materials Distribution (DMTP) to Frans Bonhomme Group on 29 November 2019 for Euro70m. This brings the total value of Saint-Gobain’s 2019 divestments to Euro3.3bn. It has stated that it will proceed with the sale of its assets, in spite of having exceeded its target of Euro3.0bn before 1 January 2020.

France: Hirsch France, a partnership consisting of 66% Hirsch and 34% BewiSynbra, has purchased six Saint-Gobain expanded polystyrene (EPS) insulation plants and 49.9% of shares in Isossol from Saint-Gobain subsidiary Placoplâtre.

Saint Gobain’s nine-month sales fell by 4.1% year to Euro31.1bn to 30 September 2019 from Euro32.5bn. The group is targeting annual divestment equivalent to Euro3.0bn to cut losses.

UK: SIG has agreed to sell its Building Solutions division to Kingspan Group for Euro42m. Building Solutions is a UK manufacturer and distributor of building envelope solutions operating through brands including Steadmans, United Roofing Products, Trimform Products, and Advanced Cladding & Insulation. SIG decided to sell the division following a strategic review in 2017. Proceeds from the sale will be used to reduce SIG’s debts.